1. How would China comment on the role of the previous four G20 summits in countering the international financial crisis? And how does China see the future development of the G20 summit?
The G20 is an effective mechanism for the international community to jointly tackle the international financial crisis. It is also the premier platform for greater international economic cooperation. The G20 summit has been instituted to meet the needs of the international community to jointly promote world economic development and tackle economic and financial challenges. It serves the interest of all parties to give full play to the role of the G20 mechanism.
Four G20 summits have been held since November 2008. By identifying measures to counter the international financial crisis, these summits have played a key role in promoting world economic recovery and growth, stabilizing international financial markets and boosting public and business confidence.
At present, the world economy is slowly recovering. Yet such recovery is not firmly established and the process is uneven. There are still quite many uncertainties. To come out of the shadow of the crisis and restore world economic growth remains a daunting challenge. The G20, as the premier platform for international economic cooperation, is duty bound to encourage all parties to strengthen macroeconomic policy coordination and promote strong, sustainable and balanced growth of the world economy.
First, it is important to continue to act in a spirit of cooperation. It is especially important for G20 members to maintain their partnership for win-win cooperation. G20 members should continue to strengthen macroeconomic policy coordination, remove the negative factors hindering world economic development and strengthen the momentum of world economic recovery.
Second, it is important to honor the commitments of the previous summits. A host of commitments have been made at the previous four G20 summits and many measures have already paid off. Going forward, G20 members should step up efforts to deliver on their promises with a sense of urgency so as to strengthen and expand the role and influence of the G20.
Third, it is important to create an enabling environment for world economic growth. G20 members should reject protectionism in all forms and manifestations, further remove policy impediments to free trade and investment and nurture new growth areas in the course of deepening economic globalization.
The Chinese side will continue to work with all other parties to help produce more positive outcomes in the G20 summit.
2. What role should China and other G20 members play in promoting strong, sustainable and balanced growth of the world economy? What's your comment on the macroeconomic policy coordination between developed countries and developing countries?
The G20 leaders decided at the Pittsburgh Summit in September 2009 to set up a framework for strong, sustainable and balanced growth and conduct macroeconomic policy coordination between developed countries and emerging market economies. Thanks to the concerted efforts of G20 members and the rest of the international community over the past year, it is now basically clear that the world economy is on course to recover and the darkest days of the crisis are already behind us. This fully shows that the macroeconomic policy coordination among G20 members is effective.
Under the G20 framework, developed countries and emerging market economies are taking stock of their experience and focusing their efforts on discussions to set clear strategic objectives to reinforce each other through mutually beneficial cooperation and promote strong, sustainable and balanced growth of the world economy.
It should be noted however that G20 members are at different development stages with different economic strengths. Only when the national conditions of different countries are fully respected and concerns of all members are properly addressed can the measures and actions of the G20 take effect in macroeconomic policy coordination. I believe that as long as developed countries and developing countries are committed to their development partnership, featuring equality, mutual benefit and win-win cooperation, the goal of strong, sustainable and balanced growth of the world economy will be attained.
3. Major economies have had a hard time over the past two years due to the impact of the global financial crisis. Yet the Chinese economy has continued its steady and fast growth. What's your comment on the contribution China has made in concert with the international community to tackling the global financial crisis and pushing for world economic recovery?
The global financial crisis which erupted two years back dealt an equally heavy blow to the Chinese economy. Confronted with such abrupt and daunting challenges, China moved quickly to roll out and fully implement a package plan to tackle the crisis. We increased four trillion RMB yuan in investment, pursued a proactive fiscal policy and a moderately easy monetary policy, promoted structural tax reduction and introduced a range of policies and measures to boost consumption, particularly household consumption. These actions combined have effectively reversed the economic slowdown. As the world economy is still in a complex and difficult situation, since early this year, China has strengthened and improved macro-economic regulation in a focused manner and sped up the transformation of economic growth pattern and economic restructuring, making significant progress along the way. China, the largest developing country and a major economy, has maintained economic stability and development. This achievement itself is a major contribution to world economic recovery.
At the same time, China has taken an active part in the international cooperation to counter the financial crisis. At the first G20 Summit in Washington in November 2008, China called upon all countries to build up confidence, make concerted efforts, overcome the difficulties and reform the international financial architecture in a comprehensive, balanced, incremental and results-oriented manner. These propositions have been applauded by the international community. Throughout the successive G20 summits, China and other parties have worked together to ensure that the G20 serves as the premier forum for addressing the global financial crisis and promoting international economic cooperation, and to help make substantive progress in reforming the international financial institutions. Despite the enormous pressure, China has maintained basic stability of the RMB exchange rate and has steadily advanced the reform of the RMB exchange rate regime under the principle of independent decision-making, controllability and incremental progress. China has contributed 50 billion US dollars to the resource increase of the IMF, participated in the Global Trade Finance Program of the International Finance Corporation, supported regional development banks in providing financing services and provided all sorts of support and assistance to relevant countries and regions, which include currency swap, credit, debt cancellation and tariff reduction and exemption. Facts have shown that China has made significant contribution to world economic recovery.
The world economy is moving slowly toward recovery. However, such recovery is highly fragile and uneven and the outlook leaves little room for optimism. Under such circumstances, all countries should take up responsibilities in real earnest, face up to their own problems, stay committed to international cooperation and appropriately manage differences. China will do its best to run its own affairs well and will not blame its failings on others. China will continue to act in a spirit of solidarity with other G20 members to ensure a successful Seoul Summit and strong, sustainable and balanced growth of the world economy.
4. The Seoul Summit will be the first G20 Summit held in Asia in an emerging market economy. How does China think the Seoul Summit should reflect the features of Asia and of emerging market economies?
The upcoming G20 Seoul Summit will be the first G20 Summit held in Asia in an emerging market economy. It is of great significance to G20's institutional development. China is ready to work with other members to ensure that the Seoul Summit will follow through on the consensus reached at previous summits and reflect the features of Asia and of emerging market economies.
The Seoul Summit should focus on the following subjects. First, continue to act in a spirit of cooperation and mutual benefit, strengthen macroeconomic policy coordination, and send out a strong message that G20 members are united in an endeavor to meet major world economic challenges so as to boost market confidence and strengthen the momentum of world economic recovery. Second, advance the reform of the international financial system, strengthen the supervision and regulation of international financial markets, and increase the voices and representation of emerging market economies and developing countries in international financial institutions. Third, redress North-South development imbalances and provide political support for the attainment of the UN Millennium Development Goals. Fourth, oppose protectionism, work for comprehensive and balanced outcomes in the Doha round negotiations and achieve the goals of the development round.
5. Recently, the world media has paid close attention to China's relations with its Asian neighbors. What is your comment on China's current relations with its neighbors in Asia?
China's relations with its Asian neighbors are in good shape on the whole. China and the countries concerned have maintained intensive high-level exchanges, established various forms of partnerships and further expanded win-win cooperation. Thanks to the joint endeavor of all sides, China's exchanges and cooperation with its Asian neighbors in trade, investment, infrastructure, finance, science and technology, culture and other areas have deepened and broadened as never before. We respect and support each other on issues concerning each other's major interests. We work in concert to meet the challenges of the global financial crisis. We work together in close coordination in handling regional hotspot issues. We understand and accommodate each other's concerns and move forward hand in hand in advancing regional cooperation. And we stand together and help each other in combating major natural disasters.
China treasures its traditional friendship with neighboring countries. China sticks to the policy of building good neighborly relationships and partnerships with its neighbors, and is committed to working with them to develop a regional environment of peace, stability, equality, mutual trust and win-win cooperation. China continues to seek to appropriately handle and address differences and issues with neighboring countries through consultation and dialogue. With regard to the problems and disputes existing in Asia, China actively encourages reconciliation and talks over the issues and champions a spirit of solidarity and cooperation. I am convinced that, with the concerted efforts of all countries, we will see a more peaceful, stable and prosperous Asia, an Asia with an even brighter future.
6. This year marks the 18th anniversary of the establishment of China-ROK diplomatic relations. How would you comment on the current state of the bilateral relationship and what are your hopes for its future development?
China and the Republic of Korea (ROK) enjoy geographical proximity, traditional cultural links and a time-honored history of friendly exchanges. The launch of China-ROK diplomatic ties in 1992 opened a new chapter in our bilateral relations. Over the past 18 years, exchanges and cooperation between the two countries in various fields have grown in a rapid and comprehensive manner, as evidenced by frequent high level exchanges, enhanced strategic mutual trust, close economic ties, dynamic cultural and people-to-people interactions and deepening mutual understanding and friendship between the two peoples. The two sides have maintained good communication and coordination in international and regional affairs and our common interests are steadily expanding. I am satisfied with the development of China-ROK relations.
China and the ROK are both important countries in Northeast Asia. To consolidate and further grow China-ROK relations serves the fundamental interests of the two countries and peoples and contributes to regional peace, stability and prosperity. We are ready to work with the ROK side to deepen exchanges and cooperation across the board and bring the China-ROK strategic partnership to a new level.